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Big Bad Pharma 23 Feb 2012 Vol. 11, No. 2 • Published by VirSci Corp. www.pharmamarketingnews.com www.virsci.com Big Bad Pharma How Bad Drug Shortages, Bad Drug Supply Chain, Bad Manufact uring, Bad Ideas, and Bad Journalism Contribute to Pharma ’s Bad Reputation Author: John Mack PMN112 -01 Find resources cited this article online at: http://tinyurl.com/5hgxra This article is part of the February 23, 2012 issue of Pharma Marketing News. For other articles in this issue, see (after February 29, 2012): http://www.news.pharma-mkting.com/PMNissue112Feb2012archive.htm Published by: VirSci Corporation PO Box 760 Newtown, PA 18940 [email protected] Pharma Marketing News Vol. 11, No. 2: February 23, 2012 p. 2 he drug industry is contending with a storm of Creating Jobs unsavory media coverage documenting drug This election year every industry is bragging that it has T shortages in the U.S., drug counterfeiting, and the solution for creating jobs and turning the economy recalls due to manufacturing faults. Some say bad around. Every night, during the evening news, we are journalism is heightening the “bad” news while ignoring reminded by the oil industry, for example, that new oil the good that the industry does, which includes creating and gas drilling will create thousands, nay, a million, life-saving drugs and jobs. new jobs in the U.S. “And that’s a good thing,” says the woman in the ads. We Cured Cancer Dammit! With regard to life-saving drugs, there can be little doubt The pharmaceutical industry also reminds Americans that the industry deserves credit, although some drug that it creates jobs. PhRMA, the industry's trade company CEOs overplay the role of the industry and association in the U.S., churns out press releases that that generates bad press. Recently, for example, Marijn warn Americans that if the government passes such- Dekkers, "outspoken" head of Bayer Pharmaceuticals, and-such law or over-regulates such-and-such activity blamed ungrateful patients for not acknowledging of the pharmaceutical industry, it will result in the loss of pharma’s role in “curing” cancer. American jobs. "If you have cancer, you get a pharmaceutical product, In a response to the President's Fiscal Year 2013 and your cancer goes away,” said Dekkers in a Wall Budget, for example, PhRMA stated "America's Street Journal interview. “You're quick to call the doctor biopharmaceutical industry is a key driver of economic and [say] the staff at the hospital was great. But the pill growth; the President's proposed budget would weaken that did it gets forgotten. We struggle with getting our ability to innovate and create jobs. This is not an society to put value on what we do, and it becomes investment in America's future and these proposals particularly important as we get under more pressure to should not be considered" (see "PhRMA Statement on develop the next pill" (for more, see http://bit.ly/zaeakk). the President's Fiscal Year 2013 Budget"; http://bit.ly/zrAbM5). Compare that exaggerated scenario to reality: deaths from cancer, adjusted for the size and age of the pop- Bad Reputation ulation, have changed little since the 1950s, while death However, when Americans were asked "Thinking about rates from heart disease and stroke have dropped sig- the role each of the following sectors played in the cur- nificantly (see Figure 1, below). In this age of social rent state of the American economy, do you think each media amplification of news sound bites and instant of the following sectors is a part of the problem, a part online collaboration, drug company executives— of the solution, or are you unsure?," only 15% said the including CEOs—need to be extra careful about what pharmaceutical industry was part of the solution, ac- they say to reporters. cording to the 2012 Harris Poll Annual RQ survey. Fifty percent (50%) said the industry was part of the problem (see Figure 2, page 3). According to Harris, that puts the drug industry on the cusp of being a "malefactor"— an industry that Americans blame for economic woes. Is Pharma’s Bad Reputation Deserved? “All the companies have to do to figure out why their reputation is in the dirt, is look in the mirror,” said an anonymous commenter to a Pharma Marketing Blog post. That and sentiments like it prompted Pharma Marketing News to ask readers if they believed that drug industry’s reputation was deserved or not. The question was part of the “How to Earn Back the Public's Trust” survey, the results of which were summarized previously (see “Pharma’s Bad Rep or Bad Rap”; http://bit.ly/pmn83-01). While a clear majority of non-industry respondents (ie, HCPs and the general public) said “Yes,” only a small minority of pharma and agency respondents were willing to admit that the bad reputation was deserved Figure 1. A Stubborn Disease. Source: NYT; http://nyti.ms/xkvmN1 Continues… © 2012 VirSci Corporation (www.virsci.com). All rights reserved. PMN112-01 Pharma Marketing News Pharma Marketing News Vol. 11, No. 2: February 23, 2012 p. 3 Figure 2. Industry Part of Economic Solution or Economic Problem. Source: 2012 Harris Poll Annual RQ survey; http://bit.ly/xeJI2T Figure 3. Question: In general, do you believe the industry's bad reputation is deserved? Source: “How to Earn Back the Public's Trust” survey; http://bit.ly/pmnsurveytrust © 2012 VirSci Corporation (www.virsci.com). All rights reserved. PMN112-01 Pharma Marketing News Pharma Marketing News Vol. 11, No. 2: February 23, 2012 p. 4 (see Figure 3, page 3). “Maybe” was their most popular At the 2010 Annual Public Relations & Communications choice. Among all respondents, 98% who are unsup- Summit at Pfizer Headquarters in NYC, Chris Loder, portive of the industry said “Yes,” whereas only 28% of Pfizer's Head of US Media Relations, cited World supportive respondents agreed. Health Organization data that says 1% of worldwide sales of Rx drugs are counterfeit. Loder claimed that Of course, the drug industry can be both part of the number is between 10 and 50 percent in "developing" solution and part of the problem. It depends on whose nations. Pfizer defines counterfeit as "products delib- problem/solution you are talking about. erately and fraudulently produced and/or mislabeled Pharma is part of the solution for white-collar workers with respect to identity and/or source to make it appear who work within industry, have Rx medical coverage, to be a genuine product." and can afford prescription drug co-pays. Blue-collar Loder spoke of Pfizer's all out campaign to bring atten- workers and retired folk who depend more on govern- tion to the counterfeit drug problem, which obviously ment "safety nets," however, may see high drug prices hurts sales, especially of Pfizer's flagship drug, Viagra. and the drug industry's antipathy toward Medicare re- But it’s also a safety issue: "Counterfeit medicines are a bates as part of the problem. The latter are not among risk to patient health and safety," said Loder. "That's the the typical U.S. pharma work force especially as the one message we send." drug industry ships more and more blue-collar manu- facturing jobs overseas to countries like China. Drug Supply Chain Safety PhRMA maintains that “the most common means for counterfeit drugs to enter the United States is through purchases made on illegal online pharmacy websites Outsourcing Will Grow operated by criminals in countries that have known counterfeiting problems” (see http://bit.ly/w3EFZN). Over 75% of respondents to the PMN “Predicting the Future of the Drug Industry Yet according to Allan Coukell, director of the Pew Survey” agree with the statement: Charitable Trusts’ medical group, counterfeit Avastin “isn’t something that was ordered over the Internet, or “Pharmaceutical and biotech companies will sold on a street corner. It illustrates that it’s possible to continue to increase their outsourcing of clinical sell a fake drug into a legitimate distribution system.” trials and related drug development. Outsourc- ing will account for more than 50% of R&D Coukell was quoted group in a recent Washington spending by 2019.” Journal article (http://wapo.st/wJb5MI). Learn more about this survey and the results While there are no known cases of someone being here: http://bit.ly/PMNsurveyPredict poisoned by counterfeit Viagra, it is a certainty that Americans died from a tainted drug entering the supply chain via legitimate means. In 2007 and 2008, for example, “up to 149 Americans died … after taking Drug Counterfeiting heparin, a blood thinner, contaminated during the It can be argued that by exporting drug manufacturing— manufacturing process in China," according to a "Drug and also clinical trials—to countries like India and Safety and Accountability" bill in (re)introduced in China, the U.S. pharmaceutical industry also endangers Congress in 2011. Also according to that bill, “up to 80 our drug supply. This link between overseas drug percent of the active ingredients in drugs used in the manufacturing and counterfeit or tainted drugs in the United States are made overseas, many in countries U.S. was suggested in a recent news story about where regulatory oversight does not meet the standards counterfeit Avastin: of the United States.” "Most Americans don't question the integrity of the It wasn't the active ingredient in Heparin that caused the drugs they rely on. They view drug counterfeiting, if they problem, it was a contaminant that was deliberately are aware of it at all, as a problem for developing added to heparin batches that were processed in China countries.
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